NVIDIA (NASDAQ: NVDA) the last line placed over its incredible fiscal 2021 – the 12 months ended 31 January. Revenue in the fourth quarter rose 61% year-on-year to $ 5.0 billion, ahead of management a few months earlier for revenue to $ 4.9 billion. Adjusted net income increased by 67% to $ 1.96 billion.
The graphic processing pioneer has a full steam ahead in the new year and said it expects revenue to be $ 5.3 billion in the middle of its first quarter guidance. The outlook implies an increase of 71% compared to the first quarter last year.
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The gears of innovation are turning
It’s hard to sum up everything that’s going on with NVIDIA these days. The company’s extensive portfolio of GPUs and related semiconductor system designs are fast emerging the leader in next generation computers. Through healthcare, automotive, cloud computing and personal computing technology, NVIDIA touches more lives daily than the average consumer even knows.
But two basic trends have pushed the company’s financial results higher and will continue to do so: gaming (the area in which NVIDIA originated) and data centers. Both segments achieved record sales in the fourth quarter. Game revenue was $ 2.5 billion, a 67% increase from last year, driven by the launch of its new RTX 30 series of high-end graphics games for video games. Management said that according to earnings, only 15% of gamers own the RTX 30 hardware, not to mention the millions of new gamers being converted each year. RTX 30 is expected to continue to drive strong growth in the gaming segment in the coming year.
The Q4 turnover of the data centers was 1.9 billion dollars, an increase of 97% over a year ago, as a new upgrade cycle for the data center is underway. Unlike before, the GPU is prominently displayed in data centers as a computer accelerator, which enhances cloud computing services and helps organizations harness the power of artificial intelligence. These network hardware updates are also in the early stages and are expected to continue in the foreseeable future.
Simply put, NVIDIA’s run of double – digit sales growth does not seem to be spent by far, as it begins its 2022 financial year.